Motor maker Nidec re-opens two factories

Major disk drive motor supplier Nidec has resumed production at several facilities in Thailand, but continues to deal with damage to six sites that are still under water.

The component giant, which manufactures around three-quarters of the world's HDD motors, confirmed operations were back online at its Rangsit plant in Pathumthani Province and at a factory in the Ayutthaya region.

"We will continue our efforts to further improve the utilisation of the factories whose operations have resumed and to bring the company's other flood stricken factories back into operation to the earliest extent possible," said Nidec in an update.

Of the supplier's remaining operations in Thailand, two factories were not impacted by the flooding and a further six remain inundated, with operations obviously suspended.

"The exact amount of damage and the effect of the floods on the company's performance are being assessed currently. We will continue to report on any actual or potential impact on the company's business performance in a prompt manner," the supplier added.

According to reports in Digi Times, Nidec is leaning more heavily on its two production sites in the Philippines, raising monthly build rates from 15 million to 25 million units. And in China, capacity is to rise by 50 per cent to 15 million units.

The disruption to the disk drive supply chain caused by the flooding is expected to result in 48 million fewer drives being made this quarter, and has already led to drive price rises in the channel and warnings that PC shortages will occur in the run up to Xmas. ®